THE LEXINGTON EXPERIENCE
EXECUTIVE SUMMARY The City of Lexington has committed to a renovation of a landmark building, the “Old� Fayette County Courthouse. The city is to be commended for its commitment to maintaining this historic legacy. The building will be dedicated to becoming a crossroads of information hosting all that is great about and available in the Lexington Area, introducing them to the horse capital of the world. Later we will discuss in some detail the audiences that this attraction might tap into. For now the following brief summary suggests the financial parameters of the project.
ATTNDANCE AND REVENUE PROJECTIONS Attendance sources
Potential Guest Volume
Capture Rate
Visits to Lexington
Per Cap Spending Average
Government Revenue @
Private Sector Spending
2.40% 1-75 Tourist vacation destination travelers
10,000,000 Daily Only Overnight
Local Visitation (100 mile driving radius)
4,860,000 Year One Year two Year Three
25% 7.50% 5%
5% 60% 40% 20% 1,215,000 364,500 243,000
$25.00 $200
$ $
7,500,000 40,000,000
$ $
180,000 960,000
972,000
$20
19,440,000
466,560
$25.00 $200.00
4,875,000 26,000,000
117,000 624,000
Lexington Discount @ 10%
Nationwide Tourism Average National tourism to Hi End Monuments
500,000 300,000 200,000
3,250,000 Daily Only Overnight
60% 40%
325,000 195,000 130,000 1,797,000
$
97,815,000
$
2,347,560
In summary, assuming a three year payback the infrastructure costs of the project to be capped at approximately 7.00 million. Given an 11,500 square feet development area this budget would allow development at the rate of 600.00/SQ FT. which is above industry standards. Annual attendance of 1,797 million results in a summer nightly attendance of 6000. Or three shows at 2,000 guest. At 15 SQ/FT per person closed sidewalks and walking street areas required would be 30,000 SQ/FT (approximate area of Main Street Frontage as walking street between 7pm and midnight) Operating costs are projected at 990,000 which would leave the city with 1,357.560 dollars annual for discretionary spending and misc. upkeep.
The core concept that is being proposed, is based on a water experience, However, we have to emphasize that this is more than a traditional fountain. We are proposing an experience that choreographs the flow of water via computer generated technology creating unique animated water sculptures, 3D digital projection mapping on the courthouse, surrounding building and water-fog screens. It will include a sound and light show that will tell the story of Lexington as the horse capital of the world. All our dreams can come true, if we have the courage to pursue them – Walt Disney POSITIONING THE IDEA - In launching a new urban project many questions rise to the surface, but the most important question is; does it improve community values? In probing for answers one looks at issues such as job creation, increased revenue to the city and pride. The kind of pride that allows one to say; this is what Lexington stands for in a community of cities across the country and around the world. Clearly the last part of that inquiry has to do with scale. Is San Francisco proud of it Cable cars, is St Louis proud of its arch. What about New York’s the Statue of Liberty? One of our key missions is to prove that the city of Lexington can become a member of these distinguished icon hosting cities. What provoked this line of inquiry was the recent commitment the city has made to refurbish the “Old” Fayette County Courthouse? Kudos to Lexington for recognizing the value of that magnificent historical structure and making the necessary financial commitment to preserve it as a national landmark. However, after the restoration of said structure what do you fill it up with? The current thinking is that it should contain a collection of leases that will host enterprises that represent what’s happening in Lexington from a perspective of servicing tourism. We applaud this usage but it begs one important question. Can a grouping of wellappointed offices attract tourism to the city? The answer seems obvious. No this usage isn’t going to attract any additional tourism. It will, and appropriately so, serve the tourists that already come to the city. Perhaps that is sufficient. However, the purpose of this analysis is to beg the question; “ is more entertainment value needed in downtown Lexington and how or should that be coupled with the Courthouse renovation?” In summary, is there an attraction that can complement the courthouse that will attract a significant number of additional overnight visitors to the city?
THEMATIC INTEGRITY This proposal suggests that there is a conceptual solution that has its roots in water. Yes Lexington does sit on an underground flow of water that will in the future offer a positive contribution to the urban landscape. But, there is a much larger link to the water theme and it is directly related to Lexington’s claim that it is the horse capital of the world. What you might ask is the connection between horses and water, bedsides of course the obvious need to sustain life. The connection is an ancient one born of Greek mythology and found in the horse Pegasus, one of the best known creatures in Greek mythology. He is a winged divine stallion usually depicted as pure white in color. He was sired by Poseidon, God of the Sea. in his role as horse-god Greco-Roman poets write about his ascent to heaven after his birth and his obeisance to Zeus, king of the gods, who instructed him to bring lightning and thunder from Olympus. After many adventures Zeus was to have transformed him into the constellation Pegasus and placed him up in the sky. He is known as the symbol of wisdom, poetry and the creator of sources in which the poets come to draw inspiration. So our idea begins with brining an entrainment experience to the City of Lexington that is rooted in the history of the horse and the great historic interplay between the horse and water.
It is hard if not impossible to sort through the fountains of the world and not see this equine water relationship.
AN EXISTING EXAMPLE Perhaps an appropriate concept for a city, Lexington, that once called itself the Athens of the west and one that even has a neighbor city called Rome In looking for an experience that mirrors what we are proposing; the world famous fountain in Rome, Italy, Fontana di Trevi came to mind. Less we think the comparison may be an overreach we need keep in mind that we proclaim Lexington to be the horse capital of the world. Not the horse capital of
Kentucky or the United States, but of the world. In that respect perhaps reaching around the world for an example of the experience we are proposing is not too farfetched.
In comparing the two fountains (the one in Rome and the one we are proposing) from a view point of scale, the building that supports the Trevi fountain is only 60 feet wider than the Lexington Courthouse. The area for people to gather around the courthouse is equal if not greater than the fountain in Rome. But what is as critical to the fountain in Rome’s success (as it competes with thousands of other fountains in Rome and Europe) is audience participation. It seems that what makes this fountain so popular is the legend that throwing a coin in the fountain will insure a return trip to Rome. (All of the proceeds are given to feed the poor.) It also tells the story of how the young peasant girl discovered a spring outside Rome who discovered the water source that would inspire the emperor Augustus to commission the construction of a twenty-two kilometer aqueduct leading into the city. The aqueduct served the hot Baths of Agrippa, and Rome, for over four hundred years. So we have two critical elements that make the Roman fountain such an important fountain. Story telling & audience participation. Our show parallels those key elements by telling the story of Lexington and inviting the hundreds of thousands who will come every year to actively participate in the song and dance that accompanies the performance. One thing to keep in mind, as we move forward in this discussion, is that we are not simply suggesting that a traditional fountain be designed into the restoration of the building, but that the fountain becomes a waterworks of sound, light and magic that nightly attracts visitors to the city and tells the city’s story. Lexington already has a lovely fountain in Triangle square so what will make this fountain so significant? IMAGE PROJECTION AND 3D MAPPING- Image Projection on buildings and structures, better known as 3-d image mapping, has becoming more and more popular worldwide. However, these, for the most part, are one time (evening) events. The purpose of this proposal is to couple this projection on building
technology (In this case the Courthouse Building) with a computer animated water-fountain display, “dynamix” sound, and a narrative story line.
THE STORY This evening performance will tell the history of Lexington. It will explain that when European settlers arrived on the scene, the Bluegrass Region was in use as a hunting ground for numerous Native American tribes. It will join Daniel Boone as he explored the area and helped establish Kentucky's first forts in Harrodsburg and Boonesborough. Our story will touch on the fact that in honor of the first battle of the American Revolution, which took place in Lexington Massachusetts, the early pioneers named their site "Lexington". The show will watch Lexington grow so that by 1820, It was, was one of the largest and wealthiest towns west of the Allegheny Mountains. So cultured was its lifestyle, the city soon gained the nickname "Athens of the West." From Athen’s of the West to Horse capital of the world Lexington has hosted the greatest equine racing champions of all time including the legendary, Lexington (named after the city), War Admiral and Secretariat to mention only a few. Our music, sound and light show will tell all this and more as it builds the credibility of Lexington as the Horse Capital of the World.
The imagery that powers up the show will be excerpts from new documentary features that will be produced each year. These film documentaries will be part of a sponsored educational program and submitted to film festivals for international recognition. SHOW QUALITY Given our experience in Disney show design plus our affiliation with a fellow Disney designer Mark Fuller, President and owner of, WET enterprises, (the company who created the Bellagio and Dubai fountains), we have no doubt that we can create a spectacular show. As such we look forward to scripting the story and creating the visuals that will support the concept and insure that both government agencies and the citizens of Lexington will be assured that this will be a spectacular, one of a kind, event. The water display would be complimented with sound and narration orchestrated to equine theme. The music and imagery will re-programmable on an annual basis to changing venues. FINANCIAL FEASIBILITY The starter challenge is to validate that such an attraction is financially feasible and will not burden the taxpayer, but in fact will generate revenue to the city coffers, (perhaps as in Rome to be used for charitable works). The following explores the revenue generating potential (and financial feasibility) of such an experience.
LACK OF AN ADMISSION AS A REVENUE GENERATOR - Given the show is an exterior, “free to the public” experience; we need to eliminate admissions as a revenue generator. As such we will look to sponsorship, food, beverage, merchandise and overnight stays in the private sector that will generate spin off government sector revenues that can be dedicated to underwriting the cost of the LEXINGTON EXPERIENCE. Currently the cities report suggests that 1.5 million guests visit the attractions in downtown Lexington. The first thing to remember is that the attractions in question, for the most part require an admission charge. In our case there is no admission charge and as such we expect a much higher market penetration rate than a paid attraction would produce. The Goal is to build a financial equation that will produce the experience with an approximate 3 year payback that would cover full fabrication costs. Revenues would then continue to cover operating costs, annual upgrades and a substantial surplus for other city projects.. THE THREE PART MARKET – The attraction will draw from three markets. 1. PART ONE - Vacation destination travelers – Our core target market is the vacation traveler who will be traveling down I-75 from the Lake States to the recreational centers in Central Florida such as Walt Disney world, Sea World and Universal City. a. The driving time from Chicago to Lexington is an approximately 7 hour’s trip. (Assuming a lunch break). Assuming an average morning start of 9AM this would put the traveling family arriving in the Lexington at approximately 4pm. Given sufficient advertising surrounding the event, a modest portion of this group (more than do so now) would be willing to interrupt their trip and visit Lexington. They would be car weary after 7 hours and the enticement of seeing a specular sound and light show in Lexington (and perhaps staying for dinner) could be a very attractive opportunity. Example Assumptions that require vetting: 1. I-75 TOURIST TRAFFIC - 5,000,000 round trips (10,000,000 Lexington passerby’s). 2. A penetration of 5% (heading south (on their way south or heading back north) resulting in 500,000 captured guests. 3. 40% (2% of total passerby’s) will decide to resume their trip the morning after (for the last show ending after 9pm) …resulting in 200,000 new overnight visits annually. 3. Per capita spending is:
1. Day Only Visits - 300,000 guests at $25.00 (Food beverage and merchandise) = 7.5 million dollars. 2. Overnight Visits – 200,000 guests (Hotel plus Food beverage and merchandise) at $200.00 = 40.0 million dollars b. This added attendance of 500,000 guests (to the existing downtown visitation) would bring additional revenues to the city via food, beverage and overnight expenditures of approximately $47.5 million dollars annually. 2. PART TWO - Local residents. Assuming a population base (within a 100 mile driving radius from Lexington) of 4.86 million people: a. With an average penetration rate of 20% this would create a visitation pattern of new local “entertainment bent” guests to the downtown area of 972,000 guests per year a. Assuming a per capita spending expenditure of 20$ per guests this would generate 19.440.000 million dollars a year in food, beverage and merchandise annually. 3. PART THREE - Special National Outreach. Given the horse lovers passion nationwide and driven by advertising and word of mouth; like the St Louis Arch, The Trolley Cars in San Francisco, The Statue of Liberty and Mount Rushmore (assuming a much smaller level of draw) there would be additional attendance to the city simply as a result of nationwide publicity a. Here are some existing attendance facts to use as a jumping off point: 1. Statue of Liberty 2.0 million 2. San Francisco Cable cars Riders 5.0 million 3. St. Louis Arch 3.0 million 4. Mount Rushmore 3.0 million Average 3.25 million b. For the purpose of this study we will assume that a modest 10% of the above average will come to Lexington to see the Courthouse sound, light and water show; or 325,000 guests c. Having traveled some distance just to see the show 40% of these guests (130,000) would spend one night and one day with an average capital expenditure of $200.00 or 26,000,000 dollars a year. d. For those who do not spend the night (60%) we are projecting a percapita expenditure of $25.00 or 4,875,000 dollars a tear
TOTAL REVENUES –Revenues attributed to the show will produce an increase in revenues in the private sector of 97.815 million dollars annually generated via a combination of food, beverage, merchandise and hotel accommodations. 5. GOVERNMENT SECTOR BENEFITS – At an annual 2.4 % benefit to the city based on total private sector benefits of 97.815 million dollars the government sector increased revenues would amount to 2.347 million dollars annually. PROJECT COST – Given this type of attraction and prior to design & engineering, show costs are very flexible as they are directly tied to the quality and detail designed into the show. Our guestimate at this point is that show costs will fall in the area of 650 dollars per square foot. The show area (not including closed street areas) in front of the City hall is approximately 11,500 square feet. A 600 dollars a square foot budget would equate to a budget of approximately 7.0 million dollars. Assuming a project show cost of 7.0 million dollars, the show pay back using government sector revenue generated directly from the LEXINGTON EXPERIENCE could be accomplished in 3 years. SUMMARY – in conclusion the LEXINGTON EXPERIENCE will bring to the city an event that will draw people from across the nation and around the world. Its scheduled performances will entertain and educate while its spin off revenues can support worthwhile urban projects. The quality of the show is guaranteed given the stature of the creative team we are proposing. The attendance factors that will pay for the cost of the show are solid assumptions. All that remains is that the City Fathers and Citizens of Lexington believe that this experience will benefit them and their city. We would consider it an honor to run that gauntlet and prove that the LEXINGTON EXPERIENCE will reach around the world in fame and reputation bringing hundreds of thousands of new visitors to the city annually to experience the proud history of the Horse Capital of the World.